·
Higher volumes and attractive model line-up support growing revenues
·
Continuing reduction of materials costs and fixed costs
·
Achieved target of three-digit million-dollar carbon credits sales
ahead of plan at USD 123 million for the first nine months of 2025
·
External headwinds continue to impact profitability
GOTHENBURG, SWEDEN – 12 November 2025. Polestar (Nasdaq: PSNY) reports select unaudited
financial and operational results for the third quarter and first nine months
of 2025.
Michael Lohscheller, Polestar CEO, says: “We are
making progress in our commercial transformation, expanding our dealer network
and opening retail locations across our 28 markets, resulting in revenue growth
of 49% in the first nine months of 2025. As market conditions remain
challenging, we continue to take steps to make our organisation and operations
more efficient.”
Key financial highlights
|
(in millions of U.S. dollars) |
For the nine months ended 30 September |
|
For the three months ended 30 September |
|
|||
|
(unaudited) |
2025 |
2024 Restated1 |
Change, % |
2025 |
2024 Restated1 |
Change, % |
|
|
Revenue |
2,171 |
1,459 |
48.8 |
748 |
550 |
36.0 |
|
|
Gross margin, % |
(34.5) |
(2.1) |
(32.4) ppts |
(6.1) |
(1.2) |
(4.9) ppts |
|
|
Adjusted Gross Margin (non-GAAP)2, % |
(1.8) |
(2.1) |
0.3 ppts |
(7.9) |
(1.2) |
(6.7) ppts |
|
|
Net loss |
(1,558) |
(867) |
(79.7) |
(365) |
(323) |
(13.0) |
|
|
Adjusted EBITDA (non-GAAP)2 |
(561) |
(610) |
8.0 |
(259) |
(176) |
(47.2) |
|
|
Cash balance |
995 |
501 |
98.6 |
|
|
|
|
1.
“Restated” as a result of the restated six-month periods ended 30 June
2024 filed on Form 6-K/A with the SEC on 1 July 2025.
2.
Non-GAAP measure. See Appendix A for details and a reconciliation of
non-GAAP metrics to the nearest GAAP measure.
For the nine months ended 30 September 2025:
·
Retail sales totalled an estimated 44,482 cars, representing growth of
36.5% year-on-year (YoY) from 32,595 cars in the comparable period, driven by
an attractive model line-up and strong sales in Europe.
·
Revenue at USD 2,171 million, up by 48.8% from USD 1,459 million a year
earlier, driven predominantly by higher volumes, a growing share of higher
priced models (Polestar 3 and Polestar 4) in the sales mix, and carbon credits
sales partially offset by pressure on pricing due to competitive and
challenging market environment and residual value guarantee costs related to
the North American markets. Carbon credits sales totalled USD 123 million in
the period from USD 0.04 million a year earlier, including USD 19 million worth
of carbon credits sales booked in other operating income.
·
Gross margin at a negative (34.5)%, a deterioration of 32.4 ppts YoY
from (2.1)% in the comparable period, mainly due to the non-cash impairment
expense on Polestar 3 of USD 739 million booked in the second quarter of 2025.
·
Adjusted Gross Margin at a negative (1.8)%, better by 0.3 ppts YoY from
(2.1)% a year earlier, mainly as a result of evolving product and geographical
sales mix, reduction of materials costs of vehicles sold and carbon credits
sales, partially offset by pressure on pricing, higher tariffs and adjustments
of inventory to net realizable value and expenses related to residual value
guarantees.
·
Net loss of USD (1,558) million, compared to net loss of USD (867)
million in the first nine months of 2024, primarily due to a higher gross loss
driven by the impairment expense.
·
Adjusted EBITDA of USD (561) million, better by USD 49 million from USD
(610) million in the comparable period, a result of lower selling, general and
administrative (SG&A) expenses driven by optimized marketing spend and
lower headcount, higher other operating income including indirect carbon
credits sales and a positive foreign exchange impact partially offset by higher
Adjusted Gross Loss and higher sales agency remuneration linked to growing
sales volumes.
·
Cash position of USD 995 million, higher by USD 256 million versus the
2024 year-end cash position of USD 739 million. During the period, Polestar
received a USD 200 million PIPE investment from PSD Investment Limited in June
2025 as well as secured and renewed financing facilities.
·
Further details are provided in the reconciliation tables for non-GAAP
measures in Appendix A.
For the three months ended 30 September 2025:
·
Retail sales totalled an estimated 14,192 cars, up 13.1% YoY from 12,548
cars a year earlier, supported by an attractive model line-up and a European
geographical sales mix.
·
Revenue at USD 748 million, up by 36.0% from USD 550 million in the
comparable period, driven predominantly by volumes and growing volumes of
higher priced models (Polestar 3 and Polestar 4) in the sales mix with a
further positive contribution from carbon credits sales offset by pricing
pressure and residual value guarantee adjustments related to the North American
markets. Carbon credits sales totalled USD 33 million in the period from USD
nil million a year earlier, including USD 1 million worth of carbon credits
sales booked in other operating income.
·
Gross margin at (6.1)%, a deterioration of 4.9 ppts from (1.2)% a year
earlier, mainly due to pressure on pricing and higher cost of sales linked to
tariffs, adverse mix effect, adjustment of inventory to net realizable value
and costs related to residual value guarantees in the North American markets,
partially offset by carbon credits sales in the quarter.
·
Adjusted Gross Margin at a negative (7.9)%, a deterioration of 6.7 ppts
from (1.2)% in the comparable period, is adjusted for a USD 12 million reversal
of impairment expense.
·
Net loss of USD (365) million, compared to net loss of USD (323) million
for the third quarter of 2024, primarily driven by a higher gross loss, higher
sales agency remuneration linked to growing sales volume, and lower other
operating income partially offset by continued reduction of SG&A expenses.
·
Adjusted EBITDA loss of USD (259) million, compared to Adjusted EBITDA
loss of USD (176) million for the third quarter of 2024, mainly due to a higher
gross loss, higher sales agency remuneration linked to growing sales volume,
and negative foreign exchange impact partially offset by reduction of SG&A
expenses.
Key operational highlights
The table below summarizes key operational
highlights for the quarter and nine months ended September 30, 2025:
|
|
For the nine months ended 30 September |
|
For the three months ended 30 September |
|
||
|
|
2025 |
2024 |
Change, % |
2025 |
2024 |
Change, % |
|
Retail sales 1 |
44,482 |
32,595 |
36.5 |
14,192 |
12,548 |
13.1 |
|
·
including external
vehicles with repurchase obligations2 |
1,452 |
1,170 |
24.1 |
473 |
182 |
159.9 |
|
·
including internal vehicles |
2,683 |
2,204 |
21.7 |
777 |
1,243 |
(37.5) |
|
Markets3 |
28 |
27 |
+ 1 market |
|
|
|
|
Sales points4 |
192 |
165 |
16.4 |
|
|
|
|
of which sales points, excluding China |
191 |
124 |
54.0 |
|
|
|
|
Service points5 |
1,269 |
1,170 |
8.5 |
|
|
|
1.
Retail sales figures are sales to end customers. Retail Sales include
new cars handed over via all sales channels and all sale types, including but
not restricted to internal, fleet, retail, rental and leaseholders’ channels
across all markets irrespective of their market model and setup and may or may
not generate directly revenue for Polestar.
2.
In the 9 months ended 30 September 2025 this number includes 179 cars
that were handed over as security under a financing arrangement.
3.
Represents the markets in which Polestar operates.
4.
Represents Sales Points, including retail locations which are physical
facilities (such as showrooms), actively selling Polestar cars, and pre-space
activations, which represent locations with an ongoing project to build a
retail location that have already started selling Polestar cars.
5.
Represents Volvo Cars service centres to provide access to customer
service points worldwide in support of Polestar’s international expansion.
·
Sales points, excluding China, continue to grow, as we transition to an
active selling model. In Q3 2025, Polestar signed up another 11 new retail
partners with a total of 141 active retail partners at the end of September
2025.
Key loan facilities and funding highlights
During the first nine months of 2025,
·
Polestar secured a USD 200 million PIPE investment from PSD Investment
Limited, an entity that is controlled by Mr. Shufu (Eric) Li, Founder and
Chairman of Geely Holding Group, in June 2025.
·
Approximately USD 2.2 billion of facilities were renewed and approximately
USD 1.0 billion of new facilities were secured, totalling USD 3.2 billion
(including USD 290 million of new facilities and the renewal of USD 1.1 billion
of existing facilities in the third quarter).
·
Debt covenants with club loan facility banks agreed and amended in June
and July 2025 regarding revenue and debt-to-asset ratio covenants testing
quarterly for the remainder of 2025 and full-year 2025.
The Company’s debt level was in compliance with its
loan covenants as of 30 September 2025.
With the support from Geely Holding Group, we
continue to make progress towards securing new equity and debt funding.
Reverse stock split
Polestar plans to launch the reverse stock split to
effect a change of the ratio of its American Depositary Shares to its ordinary
shares, which is currently 1:1. Details are expected to be announced shortly.
Key business and operational highlights
·
Polestar 5 Grand Tourer revealed at IAA Mobility in Munich.
·
Polestar 4 receives Red Dot “Best of the Best” design award.
·
Polestar 4 will be the first car to integrate Google Maps’ live lane
guidance.
·
Polestar 3 sets Guinness World Record for longest journey travelled by
an electric SUV on a single charge.
·
Polestar 3 upgraded with 800 Volt electrical architecture and peak DC charging
rate of up to 350 kW for the 2026 model year.
·
Inaugural Polestar Festival marks a milestone of 45,000 Polestars on the
road in the UK.
·
Reduction of R&D staff announced, as a result of implementation of
previously communicated strategy to make use of existing architectures from
Geely Group for future models.
Conference call
Michael
Lohscheller, CEO, and Jean-Francois Mady, CFO, will host a conference call
today, 12 November 2025, at 14:00 CET. To join the call, please follow use this
link https://edge.media-server.com/mmc/p/boejrfgq/ or follow the instructions available under
Events on the Polestar Investor Relations website.
Notes
All financial figures are in millions of U.S.
dollars (USD). Unless stated otherwise, the performance shown in this press
release covers the three-month period ended 30 September 2025 (Q3 2025),
compared to the three-month period ended 30 September 2024 (Q3 2024), and the
nine-month period ended 30 September 2025 (first nine months of 2025), compared
to the nine-month period ended 30 September 2024 (first nine months of 2024).
Calendar
Polestar expects to report its retail sales volumes
for Q4 2025 on 9 January 2026.
Ends.
About Polestar
Polestar (Nasdaq: PSNY) is the Swedish electric
performance car brand with a focus on uncompromised design and innovation, and
the ambition to accelerate the change towards a sustainable future.
Headquartered in Gothenburg, Sweden, its cars are available in 28 markets
globally across North America, Europe, and Asia Pacific.
Polestar has four models in its line-up: Polestar
2, Polestar 3, Polestar 4, and Polestar 5. Planned models include Polestar 7
compact SUV (to be introduced in 2028) and the Polestar 6 roadster. With its
vehicles currently manufactured on two continents, North America and Asia,
Polestar is diversifying its manufacturing footprint further, with production
of Polestar 7 planned in Europe.
Polestar has an unwavering commitment to
sustainability and has set an ambitious roadmap to reach its climate targets:
halve greenhouse gas emissions by 2030 per-vehicle-sold and become
climate-neutral across its value chain by 2040. Polestar’s comprehensive
sustainability strategy covers the four areas of Climate, Transparency,
Circularity, and Inclusion.
Statement regarding unaudited financial and operational results
The unaudited financial and operational information
published in this press release is subject to potential adjustments. Potential
adjustments to operational and consolidated financial information may be
identified from work performed during Polestar’s year-end audit. This could
result in differences from the unaudited operational and financial information
published herein. For the avoidance of doubt, the unaudited operational and
financial information published in this press release should not be considered
a substitute for the financial information filed with the SEC in Polestar’s
Annual Reports on Form 20-F.
Forward-looking statements
Certain statements in this press release (“Press
Release”) may be considered “forward-looking statements” as defined in the
Private Securities Litigation Reform Act of 1995. Forward-looking statements
generally relate to future events or the future financial or operating
performance of Polestar including the number of vehicle deliveries and gross
margin. For example, projections of revenue, volumes, margins, cash flow
break-even and other financial or operating metrics and statements regarding
expectations of future needs for funding and plans related thereto are
forward-looking statements. In some cases, you can identify forward-looking
statements by terminology such as “may”, “should”, “expect”, “intend”, “will”,
“estimate”, “anticipate”, “believe”, “predict”, “potential”, “forecast”,
“plan”, “seek”, “future”, “propose” or “continue”, or the negatives of these
terms or variations of them or similar terminology. Such forward-looking
statements are subject to risks, uncertainties, and other factors which could
cause actual results to differ materially from those expressed or implied by
such forward looking statements.
These forward-looking statements are based upon
estimates and assumptions that, while considered reasonable by Polestar and its
management, as the case may be, are inherently uncertain. Factors that may
cause actual results to differ materially from current expectations include,
but are not limited to: (1) Polestar’s ability to enter into or maintain
agreements or partnerships with its strategic partners, including Volvo Cars
and Geely, original equipment manufacturers, vendors and technology providers;
(2) Polestar’s ability to maintain relationships with its existing suppliers,
source new suppliers for its critical components and enter into longer term
supply contracts and complete building out its supply chain; (3) Polestar’s
ability to raise additional funding; (4) Polestar’s ability to successfully
execute cost-cutting activities and strategic efficiency initiatives; (5)
Polestar’s estimates of expenses, profitability, gross margin, cash flow, and
cash reserves; (6) Polestar’s ability to continue to meet stock exchange
listing standards; (7) changes in domestic and foreign business, market, financial,
political and legal conditions; (8) demand for Polestar’s vehicles or car sale
volumes, revenue and margin development based on pricing, variant and market
mix, cost reduction efficiencies, logistics and growing aftersales; (9) delays
in the expected timelines for the development, design, manufacture, launch and
financing of Polestar’s vehicles and Polestar’s reliance on a limited number of
vehicle models to generate revenues; (10) increases in costs, disruption of
supply or shortage of materials, in particular for lithium-ion cells or
semiconductors; (11) risks related to product recalls, regulatory fines and/or
an unexpectedly high volume of warranty claims; (12) Polestar’s reliance on its
partners to manufacture vehicles at a high volume, some of which have limited
experience in producing electric vehicles, and on the allocation of sufficient
production capacity to Polestar by its partners in order for Polestar to be
able to increase its vehicle production volumes; (13) the ability of Polestar
to grow and manage growth profitably, maintain relationships with customers and
suppliers and retain its management and key employees; (14) risks related to
future market adoption of Polestar’s offerings; (15) risks related to
Polestar’s current distribution model and the evolution of its distribution
model in the future; (16) the effects of competition and the high barriers to
entry in the automotive industry and the pace and depth of electric vehicle
adoption generally on Polestar’s future business; (17) changes in regulatory
requirements (including environmental laws and regulations and regulations
related to connected vehicles), governmental incentives, tariffs and fuel and
energy prices; (18) Polestar’s reliance on the development of vehicle charging
networks to provide charging solutions for its vehicles and its strategic
partners for servicing its vehicles and their integrated software; (19)
Polestar’s ability to establish its brand and capture additional market share,
and the risks associated with negative press or reputational harm, including
from electric vehicle fires; (20) the outcome of any potential litigation,
including litigation involving Polestar and Gores Guggenheim, Inc., government
and regulatory proceedings, including the NHTSA investigation into the Polestar
2 rear view camera, tax audits, investigations and inquiries; (21) Polestar’s
ability to continuously and rapidly innovate, develop and market new products;
(22) the impact of the ongoing conflict between Ukraine and Russia and in Israel,
the Gaza Strip and the Red Sea; and (23) the impact of the ongoing conflict
between Ukraine and Russia and in Israel, the Gaza Strip and the Red Sea; and
(24) other risks and uncertainties set forth in the sections entitled “Risk
Factors” and “Cautionary Note Regarding Forward-Looking Statements” in
Polestar’s Form 20-F, and other documents filed, or to be filed, with the SEC
by Polestar. There may be additional risks that Polestar presently does not
know or that Polestar currently believes are immaterial that could also cause
actual results to differ from those contained in the forward-looking
statements.
Nothing in this Press Release should be regarded as
a representation by any person that the forward-looking statements set forth
herein will be achieved or that any of the contemplated results of such
forward-looking statements will be achieved. You should not place undue
reliance on forward-looking statements, which speak only as of the date they
are made. Polestar assumes no obligation to update these forward-looking
statements, even if new information becomes available in the future, except as
may be required by law.
APPENDIX A
Polestar Automotive Holding UK PLC
Polestar uses both generally accepted accounting
principles ("GAAP", i.e., IFRS) and non-GAAP (i.e., non-IFRS)
financial measures to evaluate operating performance and for other strategic
and financial decision-making purposes. Polestar believes non-GAAP financial
measures are helpful to investors as they provide useful perspective on underlying
business trends and assist in period-on-period comparisons. These measures also
improve the ability of management and investors to assess and compare the
financial performance and position of Polestar with those of other companies.
These non-GAAP measures are presented for
supplemental information purposes only and should not be considered a
substitute for financial information presented in accordance with GAAP. The
measures are not presented under a comprehensive set of accounting rules and,
therefore, should only be read in conjunction with financial information
reported under GAAP when assessing Polestar's operating performance.
The measures may not be the same as similarly
titled measures used by other companies due to possible differences in calculation
methods and items or events being adjusted. A reconciliation between non-GAAP
financial measures and the most comparable GAAP performance measures is
provided below.
In December 2024, management determined that both
Adjusted Operating Loss and Adjusted Net Loss were non-GAAP measures which were
no longer needed to be evaluated as they were no longer viewed as relevant
measures for understanding the underlying performance of Polestar's core
business operations or ongoing performance. Therefore, these measures are no
longer being presented.
Non-GAAP
financial measures used by management are Adjusted EBITDA, Free Cash
Flow, Adjusted Gross Profit (Loss) and Adjusted Gross Margin.
Adjusted EBITDA
Adjusted EBITDA is calculated as net loss, adjusted
to exclude:
·
Fair value change - Earn-out rights;
·
Fair value change - Class C Shares;
·
Finance expense;
·
Finance income;
·
Income tax benefit (expense);
·
Depreciation and amortization1;
·
Impairment of property, plant and equipment, vehicles under operating
leases, and intangibles assets;
·
Restructuring costs2;
·
Gains / losses on disposals of investments3; and
·
Unusual other operating income and expenses that are considered rare or
discrete events and are infrequent in nature.
1 - Includes (a) depreciation and amortization
capitalized into the carrying value of inventory sold (i.e., part of inventory
costs), and (b) depreciation and amortization expense.
2 - Restructuring costs include expenses associated
with programs that were planned and controlled by management, and materially
changed either (a) the scope of a business undertaken by the Group, or (b) the
manner in which business is conducted.
3 - Disposals of investments include disposals, by
sales or otherwise, of (a) debt or equity financial instruments issued by
another entity that are held as investments, (b) intangible assets, (c)
property, plant, and equipment, and (d) groups of assets and liabilities
representing disposal groups that were transferred together as part of
individual transactions.
Management reviews this measure and believes it
provides meaningful insight into the core business's underlying operating
performance and trends, before the effect of any adjusting items.
The definition of Adjusted EBITDA was refined in
December 2024. Accordingly, Adjusted EBITDA for the six months ended 30 June
2024 is recast for the changed definition. For more information regarding the
changes in the Adjusted EBITDA definition, please refer to the section Non-GAAP
Financial Measures in the 2024 20-F.
Free Cash Flow
Free Cash Flow is calculated as cash used for
operating activities, adjusted to exclude cash flows to acquire property, plant
and equipment and intangible assets. This measure is reviewed by management and
management considers it to be a relevant measure for assessing cash generated
by operating activities that is available to repay debts and spend on other
strategic initiatives.
Adjusted Gross Profit (Loss) and Adjusted Gross Margin
Adjusted Gross Profit (Loss) is calculated as Gross
profit (loss), adjusted to exclude expenses arising from the impairment of
property, plant and equipment, vehicles under operating leases, and intangibles
assets. Adjusted Gross Margin is calculated as Adjusted Gross Profit (Loss)
divided by revenue. These measures are reviewed by management and management
considers them to be useful measures for assessing Polestar's historical
operating performance as they facilitate comparison between periods by
excluding the non-cash impairment expense, the measurement of which includes
significant assumptions related to future periods.
Unaudited reconciliation of Non-GAAP measures
Adjusted EBITDA
|
(in millions of U.S. dollars) |
For the nine months ended 30 September |
|
|
|
2025 |
2024 Restated1 |
|
Net loss |
(1,558.4) |
(866.7) |
|
Fair value changes on Earn-out rights and Class C shares |
(19.7) |
(75.2) |
|
Finance expense |
280.5 |
261.3 |
|
Finance income |
(51.4) |
(10.6) |
|
Income tax (benefit) expense |
(46.4) |
4.2 |
|
Depreciation and amortization |
111.9 |
75.8 |
|
Impairment expense, net of reversals |
711.6 |
(0.0) |
|
Losses / (gains) on disposals of investments, PPE and intangibles |
(4.5) |
1.4 |
|
Restructuring costs |
15.8 |
(0.0) |
|
Adjusted EBITDA |
(560.6) |
(609.8) |
1.
“Restated” as a result of the restated six-month periods ended 30 June
2024 filed on Form 6-K/A with the SEC on 1 July 2025.
Adjusted EBITDA
|
(in millions of U.S. dollars) |
For the three months ended 30 September |
|
|
|
2025 |
2024 Restated1 |
|
Net loss |
(365.3) |
(322.8) |
|
Fair value changes on earn-out rights and Class C shares |
(3.9) |
66.9 |
|
Finance expense |
95.2 |
87.4 |
|
Finance income |
1.4 |
(28.0) |
|
Income tax (benefit) expense |
(2.9) |
(10.1) |
|
Depreciation and amortization |
35.3 |
28.9 |
|
Impairment expense, net of reversals |
(12.0) |
(0.0) |
|
Losses / (gains) on disposals of PPE and intangibles |
(9.1) |
1.4 |
|
Restructuring costs |
2.2 |
(0.0) |
|
Adjusted EBITDA |
(259.1) |
(176.3) |
1.
“Restated” as a result of the restated six-month periods ended 30 June
2024 filed on Form 6-K/A with the SEC on 1 July 2025.
Adjusted Gross Loss
|
(in millions of U.S. dollars) |
For the nine months ended 30 September |
|
|
|
2025 |
2024 |
|
Gross loss |
(748.7) |
(30.0) |
|
Impairment expense, net of reversals |
709.6 |
0.0 |
|
Adjusted Gross Loss |
(39.1) |
(30.0) |
Adjusted Gross Loss
|
(in millions of U.S. dollars) |
For the three months ended 30 September |
|
|
|
2025 |
2024 |
|
Gross loss |
(45.5) |
(6.4) |
|
Impairment expense, net of reversals |
(13.9) |
0.0 |
|
Adjusted Gross Loss |
(59.4) |
(6.4) |
Adjusted Gross Margin
|
(in millions of U.S. dollars) |
For the nine months ended 30 September |
|
|
|
2025 |
2024 |
|
Adjusted Gross Loss (a) |
(39.1) |
(30.0) |
|
Revenue (b) |
2,171.0 |
1,459.0 |
|
Adjusted Gross Margin (a/b), % |
(1.8)% |
(2.1)% |
Adjusted Gross Margin
|
(in millions of U.S. dollars) |
For the three months ended 30 September |
|
|
|
2025 |
2024 |
|
Adjusted Gross Loss (a) |
(59.4) |
(6.4) |
|
Revenue (b) |
748.0 |
550.0 |
|
Adjusted Gross Margin (a/b), % |
(7.9)% |
(1.2)% |
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